Sunday, May 24th17.1°C
26329
26398

Royal Host posts reduced losses, smaller revenue as it continues transition

HALIFAX - Royal Host Inc. (TSX:RYL) lost $436,000 in its fourth quarter, almost 90 per cent less than a year earlier, as the hotel management company worked to cut costs and focus its business.

On a per-share basis, Royal Host said Tuesday it lost three cents in the quarter ended Dec. 31 compared with a loss of $4.1 million or 23 cents per share in the fourth quarter of 2012.

Hospitality revenue was $16.7 million down from $18.5 million in the last three months of 2012.

The company said it has reduced costs at both the hotel and corporate level, improving margins on its remaining revenue.

"Royal Host had such fundamental issues; its cost structure was too high, it had not made changes to its employment practices and operational processes, it was paying too much in interest expense and it wasn't investing sufficient sums in its core properties," the company said in a statement.

"These are all issues that can be fixed and the company has started to do exactly that with results that are only starting to appear in the financial statements."

For the year as a whole, Halifax-based Royal Host lost $1.46 million or nine cents per share, down from a loss of $8.26 million or 47 cents per share in 2012.

Hospitality revenue for the full year totalled $69.8 million, down from $76.2 million.

Royal Host said the decline was mostly due to the sale of six hotels since March 2012, which contributed $4.7 million of revenue in 2012, as well as a 3.8 per cent less food and beverage revenue at comparable locations.

Last month, Royal Host also sold two select service hotels and used the proceeds to reduce its debt.

The company said it does not expect any more hotel sales this year.

Royal Host owns 17 hotels across Canada as well as the Travelodge Canada franchise business which is comprised of more than 90 hotels across the country.

The Canadian Press


Read more Business News

26416


Recent Trending




Today's Market
S&P TSX15200.76-2.85
S&P CDNX703.48+2.97
DJIA18232.02-53.72
Nasdaq5089.36-1.43
S&P 5002126.06-4.76
CDN Dollar0.8137+0.0004
Gold1204.30+1.30
Oil57.45-1.98
Lumber273.80+3.70
Natural Gas2.887-0.064

 
Okanagan Companies
Pacific Safety0.13-0.01
Knighthawk0.010.00
QHR Technologies Inc1.48+0.03
Cantex0.03-0.01
Anavex Life Sciences0.425+0.053
Metalex Ventures0.09+0.01
Russel Metals25.79-0.03
Copper Mountain Mining1.38-0.03
Colorado Resources0.105+0.005
ReliaBrand Inc0.0048-0.0049
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.175-0.010
Decisive Dividend Corporation2.20+0.60

 



25528

FEATURED Property
22782402213 Omineca Place, Kelowna, BC ,V1V 1H7
6 bedrooms 4 baths
$675,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Do or do not

Photo: Thinkstock.com“The optimist sees the rose and not its thorns; the pessimist stares at the thorns, oblivious of the rose.” - Kahlil Gibran Good planning is all about managing chan...


Penetrate the smokescreen

Photo: ContributedHas this ever happened to you? You’re in the middle of your second or third “good discussion” with a prospect. Everything’s going great. The prospect seems en...


Squaring the circle

Photo: Thinkstock.comI have been reading about market segmentation and choice. Howard Moskowitz’s research into tomato sauce as retold by Malcom Gladwell on the TED talks (http://www.ted.com/tal...

_



26363

26418


Member of BC Press Council


25334